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Why are Real Estate Prices in Puna Relatively Low?
#10
Being directly downhill from the world's most productive volcano has a lot to do with why real estate here has never gone up like the other Islands. Big money developers and their financial backers hesitate to build big projects in lava zones 1 and 2, regardless of the validity of those zones, and the lack of infrastructure limits small investors. For working people already living here who just want a place to raise a family the lack of jobs combined with the high price of fuel to commute to Hilo is a real consideration, plus there isn't much for kids to do in Puna, so families end up spending a lot of time driving to Hilo anyway. The mainland real estate meltdown has slowed the influx of home equity dollars that fueled our last real estate boomlet. Pam is right, if you have the money now would be a great time to invest, but not many people have much money right now and the banks are still being very conservative about loaning for investment properties.

After 5 plus years I find that the cumulative effects of the things HiDeb. mentions have started to really grind on me. The cost of everything we buy here has continually gone up while our income has stayed the same. That means we no longer can even think about visiting family on the mainland and fixing a car now requires major financial planning. This is home and we love it, but after moving from the honeymoon stage to the long term marriage stage in our relationship with the Big Island we are no longer in denial about the downsides to living here, and those downsides are very real. Even with decent insurance and a prescription in hand, my husband has been flat out unable to get durable medical equipment that is vital to his continued health and well being, our family is far away and the increased cost of living means we cannot afford to either go visit or help them come here, after 5+ years we are still outsiders in terms of the job market, we no longer have a decent general bookstore on either side of the island, and while our 1 acre lot grows fruit trees well, to put in a garden in most of Puna requires buying or making soil.

Yes, there are positive trade offs too: no heat bills, lots of sunlight means we get enough vitamin D, fresh ahi, ono, watermelon, and sweet corn all year round, breathtaking natural scenery and that volcano that fascinates me so are all wonderful, but those negatives are very real too.



Carol
Carol

Every time you feel yourself getting pulled into other people's nonsense, repeat these words: Not my circus, not my monkeys.
Polish Proverb
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RE: Why are Real Estate Prices in Puna Relatively Low? - by csgray - 06-22-2011, 08:53 AM

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